Factory Orders Rising at Highest Annualized Rate Since 2006

One of the key measures of whether a recession is ending has always been the status of factory orders. Wells Fargo reports today that factory orders have risen for the fourth straight month, rising 1.3% in July. Notable gains were seen in the transportation sector. Excluding the volatile transportation sector (which did not see a jump in July as a result of the cash for clunkers program), orders shed 0.7 percent but remain positive on a three-month annualized basis. The three month annualized rate is the highest since 2006 and suggests orders have turned the corner, Wells Fargo Economics Group reports.